Technology
Lockheed Martin Reports Third Quarter 2024 Financial Results
Published
2 years agoon
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Net sales of $17.1 billion, an increase of 1% year over yearNet earnings of $1.6 billion, or $6.80 per shareCash from operations of $2.4 billion and free cash flow of $2.1 billion$1.6 billion of cash returned to shareholders through dividends and share repurchases Increased share repurchase authority by $3.0 billion to a total authorization of $10.3 billionIncreased quarterly dividend 5% to $3.30 per share2024 financial outlook increased
BETHESDA, Md., Oct. 22, 2024 /PRNewswire/ — Lockheed Martin Corporation [NYSE: LMT] today reported third quarter 2024 net sales of $17.1 billion, compared to $16.9 billion in the third quarter of 2023. Net earnings in the third quarter of 2024 were $1.6 billion, or $6.80 per share, compared to $1.7 billion, or $6.73 per share, in the third quarter of 2023. Cash from operations was $2.4 billion in the third quarter of 2024, compared to $2.9 billion in the third quarter of 2023. Free cash flow was $2.1 billion in the third quarter of 2024, compared to $2.5 billion in the third quarter of 2023.
“In the third quarter, we advanced our strategic, operational and financial priorities, as demonstrated by our record backlog of more than $165 billion, 48 F-35 deliveries, increased production on missile programs, and $2.1 billion of free cash flow generation,” said Lockheed Martin Chairman, President and CEO Jim Taiclet.
“As a result of our strong year-to-date results and confidence in our near-term performance, we are raising the outlook for full year 2024 sales, segment operating profit, EPS and free cash flow. Looking forward, we continue to make progress on the three key initiatives of our 21st Century Security® strategy of strengthening the resiliency and scalability of our production system, accelerating cutting edge digital and physical technologies into all our mission solutions and our internal operations, and expanding international partnerships to broaden our production capacity and drive more international sales. We are making substantial investments in these areas, while continuing to focus on our fundamental financial objective of driving free cash flow per share growth to generate returns for shareholders. Given our confidence in the company’s ability to deliver on these objectives, our Board has also approved a five percent increase in our quarterly dividend, the 22nd consecutive year of increases.”
Summary Financial Results
The following table presents the company’s summary financial results.
(in millions, except per share data)
Quarters Ended
Nine Months Ended
Sept. 29,
2024
Sept. 24,
2023
Sept. 29,
2024
Sept. 24,
2023
Net sales
$ 17,104
$ 16,878
$ 52,421
$ 48,697
Business segment operating profit1
$ 1,870
$ 1,810
$ 5,657
$ 5,347
Unallocated items
FAS/CAS pension operating adjustment
406
414
1,218
1,245
Impairment and severance charges
—
—
(87)
—
Intangible asset amortization expense
(61)
(61)
(183)
(185)
Other, net
(75)
(121)
(288)
(193)
Total unallocated items
270
232
660
867
Consolidated operating profit
$ 2,140
$ 2,042
$ 6,317
$ 6,214
Net earnings2
$ 1,623
$ 1,684
$ 4,809
$ 5,054
Diluted earnings per share2
$ 6.80
$ 6.73
$ 20.05
$ 19.97
Cash from operations3
$ 2,438
$ 2,891
$ 5,949
$ 5,555
Capital expenditures
(355)
(364)
(1,103)
(987)
Free cash flow1,3
$ 2,083
$ 2,527
$ 4,846
$ 4,568
1
Business segment operating profit and free cash flow are non-GAAP measures. See the “Use of Non-GAAP Financial Measures” section of this news release for more information.
2
Net earnings for the quarter ended Sept. 29, 2024 included $14 million ($10 million, or $0.04 per share, after-tax) of net non-operational charges. See “Adjusted earnings before income taxes; adjusted net earnings and adjusted diluted EPS” table for further details.
3
See the “Cash Flows and Capital Deployment Activities” section of this news release for more information.
F-35 Lots 18-19 Contract Update
The company remains in negotiations with the U.S. Government on the Lots 18-19 production contract. Although negotiations for this contract are in process, the company has been performing work on Lots 18-19 production under initial customer authorization and funding to begin work pursuant to an advance acquisition contract received in the fourth quarter of 2023. The company and its industry team continue work in an effort to meet the customer’s desired aircraft delivery dates for the Lots 18-19 aircraft. The company’s costs began to exceed the advanced acquisition contract value in the third quarter of 2024. As a result, the company was unable to recognize revenue and profit on approximately $400 million of costs incurred on the program in the third quarter of 2024, with at least an additional $300 million of impacts across the supply chain. Additionally, the company was prevented from invoicing and receiving cash of approximately $450 million through the third quarter of 2024. At the end of the third quarter of 2024, the company also had approximately $2 billion in potential termination liability exposure to third parties related to Lots 18-19 (some of which would be recoverable in the unlikely event of a termination). Currently, the company expects to receive contractual authorization and funding on the Lots 18-19 production contract with the U.S. Government and resume invoicing costs incurred and recover sales, profit, and cash in the fourth quarter of 2024. However, until a final agreement is reached, or the U.S. Government otherwise provides additional contractual authorization and funding, the company’s results of operations, cash flows, and financial condition will continue to be negatively impacted, and the impacts could be material and differ from the company’s current 2024 outlook.
2024 Financial Outlook
The following table and other sections of this news release contain forward-looking statements, which are based on the company’s current expectations. Actual results may differ materially from those projected. It is the company’s practice not to incorporate adjustments into its financial outlook for proposed or potential acquisitions, divestitures, ventures, pension risk transfer transactions or discretionary contributions, financing transactions, changes in law, or new accounting standards until such items have been consummated, enacted or adopted. For additional factors that may impact the company’s actual results, refer to the “Forward-Looking Statements” section in this news release.
(in millions, except per share data)
Current Update1
July 2024
Net sales
~$71,250
$70,500 – $71,500
Business segment operating profit2
~$7,475
$7,350 – $7,500
Total FAS/CAS pension adjustment
~$1,685
~$1,685
Diluted earnings per share3
~$26.65
$26.10 – $26.60
Cash from operations
~$7,950
$7,750 – $8,050
Capital expenditures
~$1,750
~$1,750
Free cash flow2
~$6,200
$6,000 – $6,300
1
The company’s current 2024 financial outlook is premised on receiving contractual authorization and funding on the F-35 Lots 18-19
production contract in the fourth quarter of 2024.
2
Business segment operating profit and free cash flow are non-GAAP measures. See the “Use of Non-GAAP Financial Measures” section of
this news release for more information.
3
Although the company typically does not update its outlook for proposed changes in law, the above includes the effect of IRS Notice 2023-63
confirming that certain expenditures incurred in the performance of cost-type contracts are not subject to capitalization for tax purposes. The
company believes incorporating the clarification from the Notice more accurately reflects its expectations because the Notice describes the tax
treatment of certain expenditures in accordance with the company’s analysis of the Internal Revenue Code.
Cash Flows and Capital Deployment Activities
The decrease in operating and free cash flows in the third quarter of 2024 compared to the same period in 2023 was primarily due to a decrease in working capital (defined as receivables, contract assets, and inventories less accounts payable and contract liabilities), which includes the cash impacts for the lack of additional contractual authorization and funding from the U.S. Government prior to the end of the third quarter of 2024 on the Lots 18-19 contract of the F-35 program.
The company’s cash activities in the third quarter of 2024, included the following:
paying cash dividends of $749 million; andpaying $850 million to repurchase 1.5 million shares.
As previously announced on Oct. 2, 2024, the company’s board authorized the repurchase of its common stock up to an additional $3.0 billion, increasing the total authorization for potential future common stock repurchases to $10.3 billion. The stock repurchase program does not have an expiration date and may be amended or terminated by the board of directors at any time. The amount of shares ultimately purchased and the timing of purchases are at the discretion of management and subject to compliance with applicable law and regulation.
Additionally, on Oct. 2, 2024, the company authorized a fourth quarter dividend payment of $3.30 per share, representing an increase of $0.15 per share over the prior quarterly dividend payment.
Segment Results
The company operates in four business segments organized based on the nature of products and services offered: Aeronautics, Missiles and Fire Control (MFC), Rotary and Mission Systems (RMS) and Space. The following table presents summary operating results of the company’s business segments and reconciles these amounts to the company’s consolidated financial results.
(in millions)
Quarters Ended
Nine Months Ended
Sept. 29,
2024
Sept. 24,
2023
Sept. 29,
2024
Sept. 24,
2023
Net sales
Aeronautics
$ 6,487
$ 6,717
$ 20,609
$ 19,861
Missiles and Fire Control
3,175
2,939
9,270
8,082
Rotary and Mission Systems
4,367
4,121
13,003
11,528
Space
3,075
3,101
9,539
9,226
Total net sales
$ 17,104
$ 16,878
$ 52,421
$ 48,697
Operating profit
Aeronautics
$ 659
$ 671
$ 2,089
$ 2,064
Missiles and Fire Control
456
398
1,217
1,146
Rotary and Mission Systems
483
482
1,408
1,286
Space
272
259
943
851
Total business segment operating
profit
1,870
1,810
5,657
5,347
Unallocated items
FAS/CAS operating adjustment
406
414
1,218
1,245
Impairment and severance charges
—
—
(87)
—
Intangible asset amortization
expense
(61)
(61)
(183)
(185)
Other, net
(75)
(121)
(288)
(193)
Total unallocated items
270
232
660
867
Total consolidated operating profit
$ 2,140
$ 2,042
$ 6,317
$ 6,214
For information on factors impacting comparability of the company’s segment sales, operating profit and operating margins, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the company’s Annual Report on Form 10-K for the year ended Dec. 31, 2023.
The company’s consolidated net favorable profit booking rate adjustments represented approximately 20% and 19% of total segment operating profit in the quarters ended Sept. 29, 2024 and Sept. 24, 2023. During the quarter ended Sept. 29, 2024, the company recognized losses of $80 million on a classified program at the company’s Aeronautics business segment due to higher than anticipated costs to achieve program objectives.
Aeronautics
(in millions)
Quarters Ended
Nine Months Ended
Sept. 29,
2024
Sept. 24,
2023
Sept. 29,
2024
Sept. 24,
2023
Net sales
$ 6,487
$ 6,717
$ 20,609
$ 19,861
Operating profit
659
671
2,089
2,064
Operating margin
10.2 %
10.0 %
10.1 %
10.4 %
Aeronautics’ net sales in the third quarter of 2024 decreased $230 million, or 3%, compared to the same period in 2023. The decrease was primarily attributable to lower net sales of $480 million on the F-35 program due to lower volume on production contracts as a result of delays in receiving additional contractual authorization and funding under the Lots 18-19 contract. This decrease was partially offset by higher net sales of $120 million on the C-130 program primarily due to higher volume on production and sustainment contracts; and $85 million on the F-16 program due to the ramp up on production.
Aeronautics’ operating profit in the third quarter of 2024 decreased $12 million, or 2%, compared to the same period in 2023. The decrease in operating profit was attributable to $25 million from lower volume described above and $20 million from unfavorable contract mix, partially offset by $30 million of higher profit booking rate adjustments. The increase in profit booking rate adjustments included an $85 million favorable profit rate adjustment for a claim associated with a contract to modernize and install new engines in C-5 Galaxy aircraft, partially offset by $80 million of unfavorable profit rate adjustments on a classified program due to higher than anticipated costs to achieve program objectives.
Missiles and Fire Control
(in millions)
Quarters Ended
Nine Months Ended
Sept. 29,
2024
Sept. 24,
2023
Sept. 29,
2024
Sept. 24,
2023
Net sales
$ 3,175
$ 2,939
$ 9,270
$ 8,082
Operating profit
456
398
1,217
1,146
Operating margin
14.4 %
13.5 %
13.1 %
14.2 %
MFC’s net sales in the third quarter of 2024 increased $236 million, or 8%, compared to the same period in 2023. The increase was primarily attributable to higher net sales of $285 million for tactical and strike missile programs due to production ramp up on Guided Multiple Launch Rocket Systems (GMLRS) and Long Range Anti-Ship Missile (LRASM) programs. This increase was partially offset by lower net sales of $90 million for integrated air and missile defense programs due to lower volume on Patriot Advanced Capability-3 (PAC-3) and Terminal High Altitude Area Defense (THAAD).
MFC’s operating profit in the third quarter of 2024 increased $58 million, or 15%, compared to the same period in 2023. The increase in operating profit was attributable to $35 million of higher profit booking rate adjustments and $20 million from volume described above. The increase in profit booking rate adjustments was primarily due to higher favorable profit rate adjustments on PAC-3 as a result of better than anticipated cost performance.
Rotary and Mission Systems
(in millions)
Quarters Ended
Nine Months Ended
Sept. 29,
2024
Sept. 24,
2023
Sept. 29,
2024
Sept. 24,
2023
Net sales
$ 4,367
$ 4,121
$ 13,003
$ 11,528
Operating profit
483
482
1,408
1,286
Operating margin
11.1 %
11.7 %
10.8 %
11.2 %
RMS’ net sales in the third quarter of 2024 increased $246 million, or 6%, compared to the same period in 2023. The increase was primarily attributable to higher net sales of $185 million on integrated warfare systems and sensors (IWSS) programs due to higher volume on radar programs and the Canadian Surface Combatant (CSC) program; and $50 million for Sikorsky helicopter programs due to higher production volume on CH-53K, Seahawk and Black Hawk programs.
RMS’ operating profit in the third quarter of 2024 was comparable to the same period in 2023 as a $25 million increase due to the higher volume described above was offset by $25 million of lower profit booking rate adjustments. The decrease in profit booking rate adjustments was primarily due to a reach-forward loss recognized on a radar program as a result of additional quantity ordering risk identified on fixed-price options.
Space
(in millions)
Quarters Ended
Nine Months Ended
Sept. 29,
2024
Sept. 24,
2023
Sept. 29,
2024
Sept. 24,
2023
Net sales
$ 3,075
$ 3,101
$ 9,539
$ 9,226
Operating profit
272
259
943
851
Operating margin
8.8 %
8.4 %
9.9 %
9.2 %
Space’s net sales in the third quarter of 2024 decreased $26 million, or 1%, compared to the same period in 2023. The decrease was primarily attributable to lower net sales of $50 million for commercial civil space due to lower volume on the Orion program, partially offset by higher volume on other space exploration programs. This decrease was partially offset by higher net sales of $25 million for strategic and missile defense programs due to higher volume on reentry programs.
Space’s operating profit in the third quarter of 2024 increased $13 million, or 5%, compared to the same period in 2023. The increase in operating profit was attributable to $25 million related to favorable contract mix across the portfolio, partially offset by $10 million of lower equity earnings driven by lower launch volume from the company’s investment in United Launch Alliance (ULA). Profit booking rate adjustments were comparable.
Total equity earnings (ULA) represented approximately $5 million, or 2% of Space’s operating profit in the third quarter of 2024, compared to approximately $15 million, or 6% for the same period in 2023.
Income Taxes
The company’s effective income tax rate was 15.4% and 13.8% for the quarters ended Sept. 29, 2024 and Sept. 24, 2023. The rate for the third quarter of 2024 was higher than the third quarter of 2023 primarily due to additional research and development tax credits that were claimed for years prior to 2023 reflected in the 2023 rate. The rates for both periods benefited from research and development tax credits, tax deductions for foreign derived intangible income and dividends paid to the company’s defined contribution plans with an employee stock ownership plan feature.
Use of Non-GAAP Financial Measures
This news release contains the following non-generally accepted accounting principles (non-GAAP) financial measures (as defined by U.S. Securities and Exchange Commission (SEC) Regulation G). While management believes that these non-GAAP financial measures may be useful in evaluating the financial performance of the company, this information should be considered supplemental to, and not a substitute for, financial information prepared in accordance with GAAP. In addition, the company’s definitions for non-GAAP financial measures may differ from similarly titled measures used by other companies or analysts.
Business segment operating profit
Business segment operating profit represents operating profit from the company’s business segments before unallocated income and expense. This measure is used by the company’s senior management in evaluating the performance of its business segments and is a performance goal in the company’s annual incentive plan. Business segment operating margin is calculated by dividing business segment operating profit by sales. The table below reconciles the non-GAAP measure business segment operating profit with the most directly comparable GAAP financial measure, consolidated operating profit.
(in millions)
2024 Outlook
Business segment operating profit (non-GAAP)
~$7,475
FAS/CAS operating adjustment1
~1,625
Intangible asset amortization expense
~(245)
Other, net
~(485)
Consolidated operating profit (GAAP)
~$8,370
1
Reflects the amount by which total CAS pension cost of $1.7 billion, exceeds FAS pension service cost and excludes non-service FAS pension income. Refer to the supplemental table “Selected Financial Data” included in this news release for a detail of the FAS/CAS operating adjustment.
Free cash flow
Free cash flow is cash from operations less capital expenditures. The company’s capital expenditures are comprised of equipment and facilities infrastructure and information technology (inclusive of costs for the development or purchase of internal-use software that are capitalized). The company uses free cash flow to evaluate its business performance and overall liquidity and it is a performance goal in the company’s annual and long-term incentive plans. The company believes free cash flow is a useful measure for investors because it represents the amount of cash generated from operations after reinvesting in the business and that may be available to return to stockholders and creditors (through dividends, stock repurchases and debt repayments) or available to fund acquisitions or other investments. The entire free cash flow amount is not necessarily available for discretionary expenditures, however, because it does not account for certain mandatory expenditures, such as the repayment of maturing debt and future pension contributions.
Adjusted earnings before income taxes; adjusted net earnings and adjusted diluted EPS
Earnings before income taxes, net earnings and diluted earnings per share (EPS) were impacted by certain non-operational items for all periods. Management believes the presentation of these measures adjusted for the impacts of these non-operational items is useful to investors in understanding the company’s underlying business performance and comparing performance from period to period. The tax effects related to each adjustment that impacted earnings before income taxes are based on a blended tax rate that combines the federal statutory rate of 21% plus an estimated state tax rate.
The table below shows the impact to earnings before income taxes, net earnings and diluted EPS for certain non-operational items:
(in millions, except per share data)
Quarters Ended
Sept. 29,
2024
Sept. 24,
2023
Earnings
Before
Income
Taxes
Net
Earnings
Diluted
EPS
Earnings
Before
Income
Taxes
Net
Earnings
Diluted
EPS
As Reported (GAAP)
$ 1,918
$ 1,623
$ 6.80
$ 1,953
$ 1,684
$ 6.73
Mark-to-market investment losses1
14
10
0.04
14
11
0.04
As Adjusted (Non-GAAP)
$ 1,932
$ 1,633
$ 6.84
$ 1,967
$ 1,695
$ 6.77
1
Includes changes in valuations of the company’s net assets and liabilities for deferred compensation plans and early-stage company investments.
Webcast and Conference Call Information
Lockheed Martin Corporation will webcast live the earnings results conference call (listen-only mode) on Tuesday, Oct. 22, 2024, at 11:00 a.m. ET on the Lockheed Martin Investor Relations website at www.lockheedmartin.com/investor. The accompanying presentation slides and relevant financial charts are also available at www.lockheedmartin.com/investor.
For additional information, visit the company’s website: www.lockheedmartin.com.
About Lockheed Martin
Lockheed Martin is a global defense technology company driving innovation and advancing scientific discovery. Our all-domain mission solutions and 21st Century Security® vision accelerate the delivery of transformative technologies to ensure those we serve always stay ahead of ready. More information at www.lockheedmartin.com.
Forward-Looking Statements
This news release contains statements that, to the extent they are not recitations of historical fact, constitute forward-looking statements within the meaning of the federal securities laws, and are based on Lockheed Martin’s current expectations and assumptions. The words “believe,” “estimate,” “anticipate,” “project,” “intend,” “expect,” “plan,” “outlook,” “scheduled,” “forecast” and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to risks and uncertainties. Actual results may differ materially due to factors such as:
the company’s reliance on contracts with the U.S. Government, which are dependent on U.S. Government funding and can be terminated for convenience, and the company’s ability to negotiate favorable contract terms;budget uncertainty, the risk of future budget cuts, the impact of continuing resolution funding mechanisms and the debt ceiling and the potential for government shutdowns and changing funding and acquisition priorities;risks related to the development, production, sustainment, performance, schedule, cost and requirements of complex and technologically advanced programs, including the F-35 program;planned production rates and orders for significant programs, compliance with stringent performance and reliability standards, and materials availability, including government furnished equipment;the timing of contract awards or delays in contract definitization as well as the timing and customer acceptance of product deliveries and performance milestones;the company’s ability to recover costs under U.S. Government contracts and the mix of fixed-price and cost-reimbursable contracts;customer procurement policies that shift risk to contractors, including competitively bid programs with fixed-price development work or follow-on production options or other financial risks; and the impact of investments, cost overruns or other cost pressures and performance issues on fixed price contracts;changes in procurement and other regulations and policies affecting the company’s industry, export of its products, cost allowability or recovery, preferred contract type, and performance and progress payments policy;performance and financial viability of key suppliers, teammates, joint ventures (including United Launch Alliance), joint venture partners, subcontractors and customers;economic, industry, business and political conditions including their effects on governmental policy;the impact of inflation and other cost pressures;the impact of pandemics and epidemics on the company’s business and financial results, including supply chain disruptions and delays, employee absences, and program delays;government actions that prevent the sale or delivery of the company’s products (such as delays in approvals for exports requiring Congressional notification);trade policies or sanctions (including Chinese sanctions on the company or its suppliers, teammates or partners, U.S. Government sanctions on Türkish entities and persons, and indirect effects of sanctions on Russia to the company’s supply chain);the company’s success expanding into and doing business in adjacent markets and internationally and the risks posed by international sales;changes in foreign national priorities and foreign government budgets and planned orders, including potential effects from fluctuations in currency exchange rates;the competitive environment for the company’s products and services, including competition from startups and non-traditional defense contractors;the company’s ability to develop and commercialize new technologies and products, including emerging digital and network technologies and capabilities;the company’s ability to benefit fully from or adequately protect its intellectual property rights;the company’s ability to attract and retain a highly skilled workforce and the impact of work stoppages or other labor disruptions;cyber or other security threats or other disruptions faced by the company or its suppliers;the company’s ability to implement and continue, and the timing and impact of, capitalization changes such as share repurchases, dividend payments and financing transactions;the accuracy of the company’s estimates and projections;changes in pension plan assumptions and actual returns on pension assets; cash funding requirements and pension risk transfers and associated settlement charges;realizing the anticipated benefits of acquisitions or divestitures, investments, joint ventures, teaming arrangements or internal reorganizations, and market volatility affecting the fair value of investments that are marked to market;the company’s efforts to increase the efficiency of its operations and improve the affordability of its products and services, including through digital transformation and cost reduction initiatives;the risk of an impairment of the company’s assets, including the potential impairment of goodwill and intangibles;the availability and adequacy of the company’s insurance and indemnities;impacts of climate change and compliance with laws, regulations, policies, and customer requirements in response to climate change concerns;changes in accounting, U.S. or foreign tax, export or other laws, regulations, and policies and their interpretation or application, and changes in the amount or reevaluation of uncertain tax positions; andthe outcome of legal proceedings, bid protests, environmental remediation efforts, audits, government investigations or government allegations that the company has failed to comply with law, other contingencies and U.S. Government identification of deficiencies in its business systems.
These are only some of the factors that may affect the forward-looking statements contained in this news release. For a discussion identifying additional important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements, see the company’s filings with the U.S. Securities and Exchange Commission including, but not limited to, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” in the company’s most recent Annual Report on Form 10-K and subsequent quarterly reports on Form 10-Q. The company’s filings may be accessed through the Investor Relations page of its website, www.lockheedmartin.com/investor, or through the website maintained by the SEC at www.sec.gov.
The company’s actual financial results likely will be different from those projected due to the inherent nature of projections. Given these uncertainties, forward-looking statements should not be relied on in making investment decisions. The forward-looking statements contained in this news release speak only as of the date of its filing. Except where required by applicable law, the company expressly disclaims a duty to provide updates to forward-looking statements after the date of this news release to reflect subsequent events, changed circumstances, changes in expectations, or the estimates and assumptions associated with them. The forward-looking statements in this news release are intended to be subject to the safe harbor protection provided by the federal securities laws.
Lockheed Martin Corporation
Consolidated Statements of Earnings1
(unaudited; in millions, except per share data)
Quarters Ended
Nine Months Ended
Sept. 29,
2024
Sept. 24,
2023
Sept. 29,
2024
Sept. 24,
2023
Net sales
$ 17,104
$ 16,878
$ 52,421
$ 48,697
Cost of sales
(14,987)
(14,830)
(46,181)
(42,513)
Gross profit
2,117
2,048
6,240
6,184
Other income (expense), net
23
(6)
77
30
Operating profit
2,140
2,042
6,317
6,214
Interest expense
(256)
(237)
(772)
(662)
Non-service FAS pension income
16
111
47
332
Other non-operating income, net
18
37
109
69
Earnings before income taxes
1,918
1,953
5,701
5,953
Income tax expense
(295)
(269)
(892)
(899)
Net earnings
$ 1,623
$ 1,684
$ 4,809
$ 5,054
Effective tax rate
15.4 %
13.8 %
15.6 %
15.1 %
Earnings per common share
Basic
$ 6.83
$ 6.75
$ 20.12
$ 20.04
Diluted
$ 6.80
$ 6.73
$ 20.05
$ 19.97
Weighted average shares outstanding
Basic
237.5
249.3
239.0
252.2
Diluted
238.6
250.2
239.9
253.1
Common shares reported in stockholders’
equity at end of period
236
247
1
The company closes its books and records on the last Sunday of the calendar quarter to align its financial closing with its business processes, which was on Sept. 29, for the third quarter of 2024 and Sept. 24, for the third quarter of 2023. The consolidated financial statements and tables of financial information included herein are labeled based on that convention. This practice only affects interim periods, as the company’s fiscal year ends on Dec. 31.
Lockheed Martin Corporation
Business Segment Summary Operating Results
(unaudited; in millions)
Quarters Ended
Nine Months Ended
Sept. 29,
2024
Sept. 24,
2023
%
Change
Sept. 29,
2024
Sept. 24,
2023
%
Change
Net sales
Aeronautics
$ 6,487
$ 6,717
(3 %)
$ 20,609
$ 19,861
4 %
Missiles and Fire Control
3,175
2,939
8 %
9,270
8,082
15 %
Rotary and Mission Systems
4,367
4,121
6 %
13,003
11,528
13 %
Space
3,075
3,101
(1 %)
9,539
9,226
3 %
Total net sales
$ 17,104
$ 16,878
1 %
$ 52,421
$ 48,697
8 %
Operating profit
Aeronautics
$ 659
$ 671
(2 %)
$ 2,089
$ 2,064
1 %
Missiles and Fire Control
456
398
15 %
1,217
1,146
6 %
Rotary and Mission Systems
483
482
— %
1,408
1,286
9 %
Space
272
259
5 %
943
851
11 %
Total business segment operating
profit
1,870
1,810
3 %
5,657
5,347
6 %
Unallocated items
FAS/CAS operating adjustment
406
414
1,218
1,245
Impairment and severance charges
—
—
(87)
—
Intangible asset amortization expense
(61)
(61)
(183)
(185)
Other, net
(75)
(121)
(288)
(193)
Total unallocated items
270
232
16 %
660
867
(24 %)
Total consolidated operating
profit
$ 2,140
$ 2,042
5 %
$ 6,317
$ 6,214
2 %
Operating margin
Aeronautics
10.2 %
10.0 %
10.1 %
10.4 %
Missiles and Fire Control
14.4 %
13.5 %
13.1 %
14.2 %
Rotary and Mission Systems
11.1 %
11.7 %
10.8 %
11.2 %
Space
8.8 %
8.4 %
9.9 %
9.2 %
Total business segment operating
margin
10.9 %
10.7 %
10.8 %
11.0 %
Total consolidated operating
margin
12.5 %
12.1 %
12.1 %
12.8 %
Lockheed Martin Corporation
Selected Financial Data
(unaudited; in millions)
2024
Outlook
2023
Actual
Total FAS income CAS cost
FAS pension income
$ —
$ 378
Less: CAS pension cost
1,685
1,725
Total FAS/CAS pension adjustment
$ 1,685
$ 2,103
Service and non-service cost reconciliation
FAS pension service cost
$ (60)
$ (65)
Less: CAS pension cost
1,685
1,725
Total FAS/CAS pension operating adjustment
1,625
1,660
Non-service FAS pension income
60
443
Total FAS/CAS pension adjustment
$ 1,685
$ 2,103
Lockheed Martin Corporation
Consolidated Balance Sheets
(unaudited, in millions, except par value)
Sept. 29,
2024
Dec. 31,
2023
Assets
Current assets
Cash and cash equivalents
$ 3,151
$ 1,442
Receivables, net
2,141
2,132
Contract assets
14,224
13,183
Inventories
3,234
3,132
Other current assets
461
632
Total current assets
23,211
20,521
Property, plant and equipment, net
8,454
8,370
Goodwill
10,800
10,799
Intangible assets, net
1,979
2,212
Deferred income taxes
3,105
2,953
Other noncurrent assets
7,971
7,601
Total assets
$ 55,520
$ 52,456
Liabilities and equity
Current liabilities
Accounts payable
$ 3,221
$ 2,312
Salaries, benefits and payroll taxes
3,076
3,133
Contract liabilities
9,051
9,190
Current maturities of long-term debt
142
168
Other current liabilities
2,320
2,134
Total current liabilities
17,810
16,937
Long-term debt, net
19,179
17,291
Accrued pension liabilities
6,077
6,162
Other noncurrent liabilities
5,254
5,231
Total liabilities
48,320
45,621
Stockholders’ equity
Common stock, $1 par value per share
236
240
Additional paid-in capital
—
—
Retained earnings
15,657
15,398
Accumulated other comprehensive loss
(8,693)
(8,803)
Total stockholders’ equity
7,200
6,835
Total liabilities and equity
$ 55,520
$ 52,456
Lockheed Martin Corporation
Consolidated Statements of Cash Flows
(unaudited; in millions)
Nine Months Ended
Sept. 29,
2024
Sept. 24,
2023
Operating activities
Net earnings
$ 4,809
$ 5,054
Adjustments to reconcile net earnings to net cash provided by operating activities
Depreciation and amortization
1,100
1,009
Stock-based compensation
229
221
Deferred income taxes
(174)
(395)
Impairment and severance charges
87
—
Changes in assets and liabilities
Receivables, net
(9)
100
Contract assets
(1,041)
(1,287)
Inventories
(102)
(224)
Accounts payable
970
1,731
Contract liabilities
(139)
(552)
Income taxes
66
(81)
Qualified defined benefit pension plans
(2)
(283)
Other, net
155
262
Net cash provided by operating activities
5,949
5,555
Investing activities
Capital expenditures
(1,103)
(987)
Other, net
149
(4)
Net cash used for investing activities
(954)
(991)
Financing activities
Issuance of long-term debt, net of related costs
1,980
1,975
Repayments of long-term debt
(168)
(115)
Repurchases of common stock
(2,700)
(3,000)
Dividends paid
(2,281)
(2,289)
Other, net
(117)
(131)
Net cash used for financing activities
(3,286)
(3,560)
Net change in cash and cash equivalents
1,709
1,004
Cash and cash equivalents at beginning of period
1,442
2,547
Cash and cash equivalents at end of period
$ 3,151
$ 3,551
Lockheed Martin Corporation
Other Financial and Operating Information
(unaudited; in millions, except for aircraft deliveries and weeks)
Backlog
Sept. 29,
2024
Dec. 31,
2023
Aeronautics
$ 50,988
$ 60,156
Missiles and Fire Control
40,722
32,229
Rotary and Mission Systems
37,571
37,726
Space
36,412
30,456
Total backlog
$ 165,693
$ 160,567
Quarters Ended
Nine Months Ended
Aircraft Deliveries
Sept. 29,
2024
Sept. 24,
2023
Sept. 29,
2024
Sept. 24,
2023
F-35
48
30
48
80
F-16
2
1
9
2
C-130J
4
7
13
13
Government helicopter programs
24
3
47
24
Commercial helicopter programs
—
3
—
4
International military helicopter programs
4
1
9
1
Number of Weeks in Reporting Period1
2024
2023
First quarter
13
12
Second quarter
13
13
Third quarter
13
13
Fourth quarter
13
14
1
Calendar quarters are typically comprised of 13 weeks. However, the company closes its books and records on the last Sunday of each month, except for the month of Dec., as its fiscal year ends on Dec. 31. As a result, the number of weeks in a reporting quarter may vary slightly during the year and for comparable prior year periods.
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SOURCE Lockheed Martin Corporation
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Tencent Cloud Named a Leader in the Inaugural Gartner® Magic Quadrant for Edge Distribution Platforms
Published
22 minutes agoon
November 9, 2026By
SHENZHEN, China, Nov. 8, 2026 /PRNewswire/ — Gartner has published its inaugural Magic Quadrant™ for Edge Distribution Platforms report, naming Tencent Cloud a Leader for EdgeOne, its edge security and acceleration platform. Tencent’s Ability to Execute and Completeness of Vision are the reasons why it was named a Leader in the Gartner Magic Quadrant for Edge Distribution Platforms.
A Global Distributed Network Underpinning Secure, Accelerated Delivery
Built on more than 3,200 edge nodes across over 70 countries and a backbone network of more than 400 Tbps, EdgeOne carries both inbound China traffic and international traffic, delivering a low-latency, highly resilient digital experience that serves as a network cornerstone for enterprises expanding overseas or entering the Chinese market.
On this network, EdgeOne serves enterprise customers across finance, media, e-commerce, logistics, ticketing, aviation, and hospitality, with standout results in latency-critical industries such as gaming and video. In gaming, IDC’s cloud gaming market research shows that Tencent Cloud CDN services running on EdgeOne have ranked first in China by revenue for four consecutive years and first in game download distribution scale. EdgeOne secures more than 10,000 games worldwide, delivering a stable, smooth experience for over 35 million pre-registered players of Neverness to Everness, providing distribution and security support for over 5.2 million pre-registered players of Mecha BREAK during its global open beta, and helping Delta Force fend off hundreds of large-scale attacks. In video, 80% of China’s top 10 outbound social video apps by scale run on EdgeOne, serving global leaders such as BeLive Technology, DONUTS, Bilibili, and Tencent Music Entertainment Group.
From Hosting to Inference: Bringing AI Applications to Market Faster at the Edge
In this evaluation, we feel Gartner focused on how well edge platforms support AI workloads. As agents move rapidly into production and inference shifts closer to users, EdgeOne has been recognized for two AI advances: the rapid launch of Makers, which helps websites and agents go live faster and reflects strong market responsiveness, and Booster, which runs inference in real time at the edge, closer to users, and demonstrates the strength of its edge inference platform.
As vibe coding takes off, a growing wave of newly generated agents is moving into production, creating new demands for instant deployment and hosting. Makers extends hosting from web pages to agents, letting enterprises deploy and go live quickly without building their own infrastructure, with global acceleration and security protection on by default. Makers now serves more than 500,000 users and over one million hosted sites, and can batch-deploy tens of thousands of assets — static HTML pages, full-stack websites, and more — for a single customer, supporting corporate websites, cross-border e-commerce, and AI SaaS, as well as agent launches and website modernization across healthcare, government, legal, and education.
Booster extends the global distributed infrastructure from content delivery to AI compute, running inference on edge nodes close to the business. For latency- and concurrency-sensitive workloads such as voice interaction, real-time interactive video, image and video generation, embodied AI data annotation, and game AI NPCs, Booster reduces network latency by more than 50%, cuts time-to-first-token by more than 70%, and boosts peak real-time concurrency by three to five times — all through a single integration that also brings acceleration and security protection.
Booster is now deployed across embodied AI, film and video, and outbound short-drama production, helping enterprises speed up real-time interaction, scale compute elastically for major events, and break through content-production bottlenecks. In embodied AI, robot voice-interaction inference runs on EdgeOne edge nodes, cutting first-word response time by 30%, reducing interaction jitter by 4.6x, and keeping end-to-end latency within one second. In film and video, EdgeOne provides on-demand, scalable inference for 4D Gaussian cloud reconstruction at major events. In outbound short-drama, AI dubbing platforms connect to Booster to support global delivery.
In addition, EdgeOne was recently named a Leader in the IDC MarketScape for Worldwide Managed Edge Services, Tencent Cloud was also named a Representative Vendor in two Gartner Market Guides — Cloud Web Application and API Protection, and Edge Distribution Platforms — and has seen related capabilities incorporated into 3GPP international standards. Looking ahead, EdgeOne will keep extending its global network, security, and edge computing capabilities toward AI, helping more enterprises connect with users worldwide and accelerate AI adoption.
Gartner Disclaimer
Gartner, Magic Quadrant for Edge Distribution Platforms, By Amol Nerlekar, Brandon Medford, Jimmy Chuang, 4 November 2026
Gartner, Market Guide for Cloud Web Application and API Protection, By Esraa ElTahawy, Adam Hils, Dale Koeppen, 8 June 2026
Gartner, Market Guide for Edge Distribution Platforms, By Amol Nerlekar, Peter Kjeldsen, Brandon Medford, 17 November 2025
Gartner and Magic Quadrant are trademarks of Gartner, Inc., and/or its affiliates.
Gartner does not endorse any company, vendor, product or service depicted in its publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner publications consist of the opinions of Gartner’s business and technology insights organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this publication, including any warranties of merchantability or fitness for a particular purpose.
The Gartner document is available upon request from Tencent Cloud.
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SOURCE Tencent Cloud
Technology
SOHU.COM REPORTS THIRD QUARTER 2026 UNAUDITED FINANCIAL RESULTS
Published
23 minutes agoon
November 9, 2026By
BEIJING, Nov. 9, 2026 /PRNewswire/ — Sohu.com Limited (NASDAQ: SOHU) (“Sohu” or the “Company”), a leading Chinese online media platform and game business group, today reported unaudited financial results for the third quarter ended September 30, 2026.
Third Quarter Highlights[1]
Total revenues were US$133 million, down 26% year-over-year and 2% quarter-over-quarter.Marketing services revenues were US$15 million, up 10% year-over-year and down 2% quarter-over-quarter.Online game revenues were US$114 million, down 30% year-over-year and 2% quarter-over-quarter.GAAP net loss attributable to Sohu.com Limited was US$15 million, compared with net income of US$9 million in the third quarter of 2025 and net income of US$0.2 million in the second quarter of 2026.Non-GAAP[2] net loss attributable to Sohu.com Limited was US$15 million, compared with net income of US$9 million in the third quarter of 2025 and net income of US$0.5 million in the second quarter of 2026.
Dr. Charles Zhang, Chairman and CEO of Sohu.com Limited, commented, “In the third quarter of 2026, our marketing services revenues hit the high end of our guidance, while both our online game revenues and our bottom-line performance were in line with our expectations. For the Sohu social media platform, we continued to strengthen its social features through numerous iconic events, fostering genuine connections among users and boosting active user interactions across multiple verticals. We also kept leveraging our integrated product matrix with innovative and customized marketing solutions to unlock monetization potential. For our online games, we continued to introduce fresh content to sustain player interest while offering tailored gameplay experiences to meet evolving player needs.”
Third Quarter Financial Results
Revenues
Total revenues were US$133 million, down 26% year-over-year and 2% quarter-over-quarter.
Marketing services revenues were US$15 million, up 10% year-over-year and down 2% quarter-over-quarter.
Online game revenues were US$114 million, down 30% year-over-year and 2% quarter-over-quarter.
Cost of Revenues
Both GAAP and non-GAAP total cost of revenues were US$32 million, down 9% year-over-year and up 9% quarter-over-quarter.
Both GAAP and non-GAAP cost of marketing services revenues were US$15 million, up 23% year-over-year and 11% quarter-over-quarter.
Both GAAP and non-GAAP cost of online game revenues were US$14 million, down 33% year-over-year and up 2% quarter-over-quarter.
[1] Changyou’s wholly-owned subsidiary Shanghai Jingmao Culture Communication Co., Ltd. (“Shanghai Jingmao”), which operated Changyou’s cinema advertising business, ceased operations and commenced bankruptcy proceedings during the third quarter of 2019. During the third quarter of 2023, Shanghai Jingmao’s bankruptcy proceedings were concluded by a Chinese mainland bankruptcy court, and the Company accordingly recognized a disposal gain within discontinued operations in the condensed consolidated statements of operations. During the second quarter of 2026, as a result of the Company’s receipt of a further distribution of Shanghai Jingmao’s insolvent assets, the Company recognized an additional disposal gain of US$1 million within discontinued operations in the condensed consolidated statements of operations. Unless indicated otherwise, results presented in this press release are related to continuing operations only and exclude the disposal gain mentioned above.
[2] Non-GAAP results exclude share-based compensation expense. Explanation of the Company’s non-GAAP financial measures and related reconciliations to GAAP financial measures are included in the accompanying “Non-GAAP Disclosure” and “Reconciliations of Non-GAAP Results of Operation Measures to the Nearest Comparable GAAP Measures.”
Operating Expenses
Both GAAP and non-GAAP operating expenses were US$120 million, down 9% year-over-year and 4% quarter-over-quarter.
Operating Profit/(Loss)
Both GAAP and non-GAAP operating losses were US$18 million, compared with operating profit of US$14 million in the third quarter of 2025 and an operating loss of US$18 million in the second quarter of 2026.
Income Tax Expense/(Benefit)
Both GAAP and non-GAAP income tax expenses were US$4 million, compared with income tax expense of US$17 million in the third quarter of 2025 and income tax benefit of US$7 million in the second quarter of 2026. For the second quarter of 2026, income tax benefit included reversal of a tax expense of approximately US$13 million due to a reversal of uncertain tax positions.
Net Income/(Loss)
GAAP net loss attributable to Sohu.com Limited was US$15 million, or a net loss of US$0.60 per fully-diluted American depositary share (“ADS,” each ADS representing one Sohu ordinary share), compared with net income of US$9 million in the third quarter of 2025 and net income of US$0.2 million in the second quarter of 2026.
Non-GAAP net loss attributable to Sohu.com Limited was US$15 million, or a net loss of US$0.59 per fully-diluted ADS, compared with net income of US$9 million in the third quarter of 2025 and net income of US$0.5 million in the second quarter of 2026.
Liquidity and Capital Resources
As of September 30, 2026, cash and cash equivalents, short-term investments and long-term time deposits totaled approximately US$1.2 billion.
Supplementary Information for Changyou Results[3]
Third Quarter 2026 Operating Results
For PC games, total average monthly active user accounts[4] (MAU) were 2.6 million, a decrease of 4% year-over-year and flat quarter-over-quarter. Total quarterly aggregate active paying accounts[5] (APA) were 1.0 million, a decrease of 8% year-over-year and an increase of 4% quarter-over-quarter. The year-over-year decrease in APA was mainly due to the natural decline of Changyou’s older games, including Tian Long Ba Bu (“TLBB”) PC, and to the natural decline of TLBB: Return, which was launched during the third quarter of 2025.
For mobile games, total average MAU were 1.4 million, a decrease of 24% year-over-year and 16% quarter-over-quarter. Total quarterly APA were 0.2 million, a decrease of 25% year-over-year and 4% quarter-over-quarter. The year-over-year and quarter-over-quarter decreases in MAU and APA were mainly due to the natural decline of Changyou’s older games.
Third Quarter 2026 Unaudited Financial Results
Total revenues were US$115 million, a decrease of 30% year-over-year and 2% quarter-over-quarter. Online game revenues were US$114 million, a decrease of 30% year-over-year and 2% quarter-over-quarter. For online game revenues, the year-over-year decrease was mainly due to a natural decline from a high comparison base driven by content updates released for TLBB PC and the launch of TLBB: Return in the third quarter of 2025.
Both GAAP and non-GAAP total cost of revenues were US$14 million, a decrease of 33% year-over-year and an increase of 2% quarter-over-quarter.
Both GAAP and non-GAAP operating expenses were US$42 million, a decrease of 23% year-over-year and 12% quarter-over-quarter. The year-over-year decrease was mainly due to a decrease in salary and benefits expenses, as well as a decrease in marketing and promotional spending for our online games. The quarter-over-quarter decrease was mainly due to a decrease in licensing fees related to product development.
GAAP operating profit was US$58 million, compared with US$87 million for the third quarter of 2025 and US$55 million for the second quarter of 2026.
Non-GAAP operating profit was US$59 million, compared with US$88 million for the third quarter of 2025 and US$56 million for the second quarter of 2026.
[3] “Changyou Results” consist of the results of Changyou’s online game business and its 17173.com Website.
[4] Monthly active user accounts refers to the number of registered accounts that are logged in to these games at least once during the month.
[5] Quarterly aggregate active paying accounts refers to the number of accounts from which game points are utilized at least once during the quarter.
Recent Development
Under the previously-announced share repurchase program of up to US$150 million of the outstanding ADSs, Sohu had repurchased 10.1 million ADSs for an aggregate cost of approximately US$134 million as of November 5, 2026.
Business Outlook
For the fourth quarter of 2026, Sohu estimates:
Marketing services revenues to be between US$13 million and US$14 million; this implies an annual decrease of 18% to 24%, and a sequential decrease of 6% to 13%.Online game revenues to be between US$111 million and US$121 million; this implies an annual decrease of 8% to an annual increase of 1%, and a sequential decrease of 3% to a sequential increase of 6%.Both non-GAAP and GAAP net loss attributable to Sohu.com Limited to be between US$17 million and US$27 million.
For the fourth quarter 2026 guidance, the Company has adopted a presumed exchange rate of RMB6.73=US$1.00, as compared with the actual exchange rate of approximately RMB7.08=US$1.00 for the fourth quarter of 2025, and RMB6.78=US$1.00 for the third quarter of 2026.
This forecast reflects Sohu’s management’s current and preliminary view, which is subject to substantial uncertainty.
Non-GAAP Disclosure
To supplement the unaudited consolidated financial statements presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”), Sohu’s management uses non-GAAP measures of operating profit/(loss), net income/(loss), net income/(loss) attributable to Sohu.com Limited and diluted net income/(loss) attributable to Sohu.com Limited per ADS, which are adjusted from results based on GAAP to exclude the impact of share-based compensation expense. These measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results.
Sohu’s management believes excluding share-based compensation expense from the Company’s non-GAAP financial measures is useful for itself and investors. Further, the impact of share-based compensation expense could not be anticipated by management and business line leaders, and these expenses were not built into the annual budgets and quarterly forecasts that have been the basis for information Sohu provides to analysts and investors as guidance for future operating performance. As share-based compensation expense does not involve subsequent cash outflow and is not reflected in the cash flows at the equity transaction level, Sohu does not factor in its impact when evaluating and approving expenditures or when determining the allocation of its resources to its business segments. As a result, in general, the monthly financial results for internal reporting and any performance measures for commissions and bonuses are based on non-GAAP financial measures that exclude share-based compensation expense.
The non-GAAP financial measures are provided to enhance investors’ overall understanding of Sohu’s current financial performance and prospects for the future. A limitation of using non-GAAP operating profit/(loss), net income/(loss), net income/(loss) attributable to Sohu.com Limited, and diluted net income/(loss) attributable to Sohu.com Limited per ADS excluding share-based compensation expense is that this expense has been and can be expected to continue to recur in Sohu’s business. In order to mitigate these limitations Sohu has provided specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying tables include details on the reconciliation between the GAAP financial measures that are most directly comparable to the non-GAAP financial measures that have been presented.
Notes to Financial Information
Financial information in this press release other than the information indicated as being non-GAAP is derived from Sohu’s unaudited financial statements prepared in accordance with GAAP.
Safe Harbor Statement
This announcement contains forward-looking statements. It is currently expected that the Business Outlook will not be updated until release of Sohu’s next quarterly earnings announcement; however, Sohu reserves right to update its Business Outlook at any time for any reason. Statements that are not historical facts, including statements about Sohu’s beliefs and expectations, are forward-looking statements. These statements are based on current plans, estimates and projections, and therefore you should not place undue reliance on them. Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to, instability in global financial and credit markets and its potential impact on the Chinese economy; exchange rate fluctuations, including their potential impact on the Chinese economy and on Sohu’s reported U.S. dollar results; fluctuations in Sohu’s quarterly operating results; the possibilities that Sohu will be unable to recoup its investment in content and will be unable to develop a series of successful games for mobile platforms or successfully monetize mobile games it develops or acquires; and Sohu’s reliance on marketing services offerings and online games for its revenues. Further information regarding these and other risks is included in Sohu’s annual report on Form 20-F for the year ended December 31, 2025, and other filings with and information furnished to the U.S. Securities and Exchange Commission.
Conference Call and Webcast
Sohu’s management team will host a conference call at 7:30 a.m. U.S. Eastern Time, November 9, 2026 (8:30 p.m. Beijing/Hong Kong time, November 9, 2026) following the quarterly results announcement. Participants can register for the conference call by clicking here, which will lead them to the conference registration website. Upon registration, participants will receive details for the conference call, including the dial-in numbers and a unique access PIN. Please dial in 10 minutes before the call is scheduled to begin.
The live Webcast and archive of the conference call will be available on the Investor Relations section of Sohu’s website at https://investors.sohu.com/.
About Sohu
Sohu.com Limited (NASDAQ: SOHU) was established by Dr. Charles Zhang, one of China’s internet pioneers, in the 1990s. Sohu operates one of the leading Chinese online media platforms and also engages in the online game business in the Chinese mainland. Sohu has built one of the most comprehensive matrices of Chinese language web properties, consisting of Sohu News App, Sohu Video App, the mobile portal m.sohu.com, the PC portal www.sohu.com, and the online games platform www.changyou.com/en/.
As a mainstream media platform with social features, Sohu is indispensable to the daily life of millions of Chinese, providing to a vast number of users a network of web properties and community based products, which offer a broad array of content, such as news and information, in the form of text, picture, video, and live broadcasting. Sohu also attracts users to actively engage in content generation and distribution, and actively interact with each other on the platform. Sohu’s online game business is conducted by its subsidiary Changyou, which develops and operates a diverse portfolio of PC and mobile games, such as the well-known TLBB PC and Legacy TLBB Mobile.
For investor and media inquiries, please contact:
Sohu.com Limited
Ms. Pu Huang
Tel: +86 (10) 6272-6645
E-mail: ir@contact.sohu.com
Christensen Advisory
E-mail: sohu@christensencomms.com
SOHU.COM LIMITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED, IN THOUSANDS EXCEPT PER SHARE AMOUNTS)
Three Months Ended
Sep. 30, 2026
Jun. 30, 2026
Sep. 30, 2025
Revenues:
Marketing services
$
14,888
$
15,179
$
13,596
Online games
113,872
116,171
162,036
Others
4,483
4,190
4,529
Total revenues
133,243
135,540
180,161
Cost of revenues:
Marketing services
14,914
13,400
12,172
Online games
14,119
13,829
21,177
Others
2,531
1,727
1,517
Total cost of revenues
31,564
28,956
34,866
Operating expenses:
Product development
63,636
68,894
61,820
Sales and marketing (includes share-based
compensation expense of nil, $nil, and $4,
respectively)
43,715
43,801
49,699
General and administrative (includes share-based
compensation expense of $207, $296, and $426,
respectively)
12,608
12,188
20,196
Total operating expenses
119,959
124,883
131,715
Operating profit/(loss)
(18,280)
(18,299)
13,580
Other income, net
3,127
7,166
5,145
Interest income
5,486
5,718
7,140
Exchange difference
(585)
(1,224)
(563)
Income/(loss) before income tax expense
(10,252)
(6,639)
25,302
Income tax expense/(benefit)[6]
4,493
(6,874)
16,636
Net income/(loss) from continuing operations
(14,745)
235
8,666
Net income from discontinued operations[7]
–
734
–
Net income/(loss)
(14,745)
969
8,666
Less: Net income from continuing operations
attributable to the noncontrolling interest shareholders
1
–
–
Net income/(loss) from continuing operations attributable
to Sohu.com Limited
(14,746)
235
8,666
Net income from discontinued operations attributable to
Sohu.com Limited
–
734
–
Net income/(loss) attributable to Sohu.com Limited
(14,746)
969
8,666
Basic net income/(loss) from continuing operations per
share/ADS attributable to Sohu.com Limited
$
(0.60)
$
0.01
$
0.32
Basic net income from discontinued operations per
share/ADS attributable to Sohu.com Limited
$
–
$
0.03
$
–
Basic net income/(loss) per share/ADS attributable to
Sohu.com Limited
$
(0.60)
$
0.04
$
0.32
Shares/ADSs used in computing basic net income/(loss)
per share/ADS attributable to Sohu.com Limited[8]
24,765
25,451
27,491
Diluted net income/(loss) from continuing operations
per share/ADS attributable to Sohu.com Limited
$
(0.60)
$
0.01
$
0.32
Diluted net income from discontinued operations
per share/ADS attributable to Sohu.com Limited
$
–
$
0.03
$
–
Diluted net income/(loss) per share/ADS attributable to
Sohu.com Limited
$
(0.60)
$
0.04
$
0.32
Shares/ADSs used in computing diluted net
income/(loss) per share/ADS attributable to Sohu.com
Limited
24,765
25,451
27,491
[6] For the second quarter of 2026, income tax benefit included reversal of a tax expense of approximately US$13 million due to a reversal of uncertain tax positions.
[7] See footnote 1.
[8] Each ADS represents one ordinary share.
SOHU.COM LIMITED
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED, IN THOUSANDS)
As of Sep. 30, 2026
As of Dec. 31, 2025
ASSETS
Current assets:
Cash and cash equivalents
$
125,499
$
128,308
Short-term investments
698,463
702,372
Accounts receivable, net
38,829
43,335
Prepaid and other current assets
92,100
93,903
Total current assets
954,891
967,918
Fixed assets, net
248,798
246,263
Goodwill
10,257
10,257
Long-term investments, net
43,836
43,939
Intangible assets, net
2,971
4,692
Long-term time deposits
330,906
350,659
Other assets
11,362
12,325
Total assets
$
1,603,021
$
1,636,053
LIABILITIES
Current liabilities:
Accounts payable
$
35,154
$
36,215
Accrued liabilities
104,966
95,430
Receipts in advance and deferred revenue
56,374
54,878
Accrued salary and benefits
36,976
55,018
Taxes payables
12,320
15,571
Other short-term liabilities
74,993
76,601
Total current liabilities
$
320,783
$
333,713
Long-term other payables
3,609
2,896
Long-term tax liabilities
8,212
21,051
Other long-term liabilities
222
322
Total long-term liabilities
$
12,043
$
24,269
Total liabilities
$
332,826
$
357,982
SHAREHOLDERS’ EQUITY:
Sohu.com Limited shareholders’ equity
1,269,850
1,277,727
Noncontrolling interest
345
344
Total shareholders’ equity
$
1,270,195
$
1,278,071
Total liabilities and shareholders’ equity
$
1,603,021
$
1,636,053
SOHU.COM LIMITED
RECONCILIATIONS OF NON-GAAP RESULTS OF OPERATIONS MEASURES TO THE NEAREST COMPARABLE GAAP MEASURES
(UNAUDITED, IN THOUSANDS EXCEPT PER SHARE AMOUNTS)
Three Months Ended Sep. 30, 2026
Three Months Ended Jun. 30, 2026
Three Months Ended Sep. 30, 2025
GAAP
Non-GAAP
Adjustment
Non-GAAP
GAAP
Non-GAAP
Adjustment
Non-GAAP
GAAP
Non-GAAP
Adjustment
Non-GAAP
Operating expenses
$
119,959
$
(207)
(a) $
119,752
$
124,883
$
(296)
(a) $
124,587
$
131,715
$
(430)
(a) $
131,285
Operating profit/(loss)
$
(18,280)
$
207
(a) $
(18,073)
$
(18,299)
$
296
(a) $
(18,003)
$
13,580
$
430
(a) $
14,010
Income tax expense/(benefit)[9]
$
4,493
$
–
$
4,493
$
(6,874)
$
–
$
(6,874)
$
16,636
$
–
$
16,636
Net income/(loss) before non-
controlling interest
$
(14,745)
$
207
(a) $
(14,538)
$
235
$
296
(a) $
531
$
8,666
$
430
(a) $
9,096
Net income/(loss) from continuing
operations attributable to Sohu.com
Limited for diluted net income/(loss)
per share/ADS
$
(14,746)
$
207
(a) $
(14,539)
$
235
$
296
(a) $
531
$
8,666
$
430
(a) $
9,096
Net income from discontinued
operations attributable to Sohu.com
Limited for diluted net income
per share/ADS[10]
$
–
$
–
$
–
$
734
$
–
$
734
$
–
$
–
$
–
Net income/(loss) attributable to
Sohu.com Limited for diluted net
income/(loss) per share/ADS
$
(14,746)
$
207
(a) $
(14,539)
$
969
$
296
(a) $
1,265
$
8,666
$
430
(a) $
9,096
Diluted net income/(loss) from
continuing operations per share/ADS
attributable to Sohu.com Limited
$
(0.60)
$
(0.59)
$
0.01
$
0.02
$
0.32
$
0.33
Diluted net income from discontinued
operations per share/ADS attributable
to Sohu.com Limited
$
–
$
–
$
0.03
$
0.03
$
–
$
–
Diluted net income/(loss) per
share/ADS attributable to Sohu.com
Limited
$
(0.60)
$
(0.59)
$
0.04
$
0.05
$
0.32
$
0.33
Shares/ADSs used in computing
diluted net income/(loss) per
share/ADS attributable to Sohu.com
Limited
24,765
24,765
25,451
25,451
27,491
27,491
Note:
(a) Share-based compensation expense
[9] See footnote 6.
[10] See footnote 1.
View original content to download multimedia:https://www.prnewswire.com/news-releases/sohucom-reports-third-quarter-2026-unaudited-financial-results-302932892.html
SOURCE Sohu.com Limited
Technology
GreenCore Solutions Rebrands as WeFetch.ai for the AI Shopping Market: gtinfetch.ai lead product
Published
23 minutes agoon
November 9, 2026By
AI sector in 2026: 3 billion AI users, half of consumers AI shopping, 8 in 10 buyers in leading sectors on AI agents, $2.7 trillion in AI spending
VANCOUVER, BC, Nov. 9, 2026 /PRNewswire/ — GreenCore Solutions Corp. (GSC) today announced it is rebranding as WeFetch.ai, a maker of artificial intelligence (AI) software for AI shopping, with 84 million barcodes across 70 countries live for AI agent shopping by consumers, retailers and brands.
The 2025 to 2026 review:
Business. 2025: 1 in 10 large companies had AI agents at work (KPMG).Today: 8 in 10 buyers in leading sectors are on AI agents (G2).People. 2025: ChatGPT had 300 million weekly users (OpenAI).Today: AI exploded to 3 billion people using it monthly, 1 in 3 people on earth (DataReportal).Retail. 2025: zero. No major retailer had opened its store to AI agents.Today: Walmart and others run Model Context Protocol (MCP) gateways for AI agents shopping.Compute. 2012: businesses are paying for cloud compute.Today: a dollar of agentic compute buys 30,000 times more power. Shopping. 2025: zero. No one was shopping inside an AI.Today: half of consumers shop with AI (53%, McKinsey).Manufacturers. 2025: 1-to-2 in 10.Today: at 2 in 10.
What we saw
The turn came in November 2025, when Anthropic released Claude Opus 4.5. GSC’s management team recognized a confluence of events:
massive new compute available to business without the traditional costs;new AI agents doing software tasks on their own;a market to serve consumers, retail and brands with GSC’s core consumer goods expertise.
AI commerce has arrived, and it relies on gtinfetch.ai or similar AI software products to execute reliable transactions over x402, the new financial system’s payment protocol.
What we designed
One record for every product an AI agent might buy, keyed on the barcode, the Global Trade Item Number (GTIN). It answers only when the sources agree, and says “unknown” rather than guess. Around that record, a door for each party in AI shopping:
Brands: to see whether their products are in the AI’s answer.Shoppers: to check the AI picked the right product.AI agents: to turn a shopper’s words into the right barcode.Technology teams: to build on the record directly.
It offers a promotional and paid per answer model over x402.
What we built
WeFetch.ai, the barcode fetch system for AI agents. It answers for 84 million products in 70 countries, with 3.5 million points of sale on its own record, and includes:
triggerfetch for brands;shopfetch for shoppers;matchfetch for AI agents;gtinfetch, the record itself.
It is AI native, and works with ChatGPT, Claude, Gemini, Grok, Mistral, Perplexity and Muse. Every answer is signed.
“I am pleased to announce to shareholders that we moved early into the AI agent market,” said Matthew Keddy, Chief Executive Officer. “In the 11 months of 2026, AI reached 3 billion users, and 8 in 10 buyers in leading sectors went to AI agents. Those companies broke from the trendline. The 2 in 10 manufacturers still starting out are 4 times behind, 2 to 5 years back, and facing a specialist gap. In this market, behind stays behind: customers have moved to trading through AI agents, and the laggards lose value and velocity.”
“We read the same signals everyone else had, and we acted. We treated the arrival of AI agents as a fiduciary matter for our shareholders; doing nothing would have been the mistake. We called it with the 8 in 10. The 2 in 10 stood still and watched. Today, we lead. With WeFetch, millions of AI agents can work with our barcode (GTIN) algorithm in real time, every transaction checked twice and recorded in our Record of Cleared Orders (RCO). Structural change this deep rarely happens in under 12 months. We saw it coming, we built for it, and we got it right.”
WeFetch.ai operations, Q4 2026
37 AI agents run the company’s operations.Live on Microsoft Azure across 18 regions, agentic dataset improved nightly.Backed up on Amazon Web Services (AWS) in Paris, France.A standby on AWS switches on in a minute if a data center goes down.Every order cleared leaves a signed receipt, its Record of Cleared Orders (RCO).
The market: Gartner forecasts $2.7 trillion in AI spending in 2026. McKinsey projects that AI agents will orchestrate $3 trillion to $5 trillion in global commerce by 2030, up to $1 trillion of it in US retail. Every one of those AI agent purchases needs the right barcode.
About WeFetch.ai
WeFetch.ai is AI software for AI shopping, with products for shopping, retail and brands. Powered by gtinfetch.ai, WeFetch.ai is headquartered in Vancouver, Canada.
Contact: Matthew Keddy, Chief Executive Officer, mk@gsc-em.com, +1 647 237 7744
View original content:https://www.prnewswire.com/apac/news-releases/greencore-solutions-rebrands-as-wefetchai-for-the-ai-shopping-market-gtinfetchai-lead-product-302932971.html
SOURCE Greencore Solutions Corp.
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